Quick alpha check on EtherFi's $PAXG yield play:
It's NOT actually $PAXG earning yield - it's PAXGy (wrapped version). The yield generation is happening on the PAXGy side, not raw gold.
How it works:
80% of $PAXG gets lent to institutions
20% stays liquid for redemptions
This isn't direct DeFi farming. You're not holding pure tokenized gold exposure anymore - you're in a lending wrapper.
If you're stacking $PAXG as a hedge or safe haven, understand the difference. PAXGy = yield but counterparty risk. Raw $PAXG = pure gold peg.
Not FUD, just facts. Know what you're holding.
It's NOT actually $PAXG earning yield - it's PAXGy (wrapped version). The yield generation is happening on the PAXGy side, not raw gold.
How it works:
80% of $PAXG gets lent to institutions
20% stays liquid for redemptions
This isn't direct DeFi farming. You're not holding pure tokenized gold exposure anymore - you're in a lending wrapper.
If you're stacking $PAXG as a hedge or safe haven, understand the difference. PAXGy = yield but counterparty risk. Raw $PAXG = pure gold peg.
Not FUD, just facts. Know what you're holding.